[Executive Summary](index=1&type=section&id=Executive%20Summary) This section provides a high-level overview of Tutor Perini's strong second-quarter 2025 financial performance, key achievements, and updated EPS guidance [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Tutor Perini reported strong second-quarter 2025 results with significant year-over-year growth in revenue, income from construction operations, and EPS, driven by increased project execution on higher-margin projects across all segments Financial Performance Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change (Y/Y) | % Change (Y/Y) | | :-------------------------------- | :---------- | :---------- | :----------- | :------------- | | Revenue | $1.37 billion | $1.13 billion | +$0.24 billion | +22% | | Income from construction operations | $76.4 million | $40.5 million | +$35.9 million | +89% | | Net income attributable to Company | $20.0 million | $0.8 million | +$19.2 million | Substantial | | Diluted EPS | $0.38 | $0.02 | +$0.36 | Substantial | | Adjusted Net income attributable to Company | $75.1 million | $17.5 million | +$57.6 million | +329% | | Adjusted EPS | $1.41 | $0.34 | +$1.07 | +315% | - Revenue growth was solid across all three segments, with Civil and Building segments up **34%** and **11%** respectively. The Civil segment achieved its highest-ever revenue for both the second quarter and first six months of 2025[4](index=4&type=chunk) - Income from construction operations was negatively impacted by a **$38.5 million** increase in share-based compensation expense due to the doubling of the Company's stock price[5](index=5&type=chunk) [Key Achievements and Records](index=1&type=section&id=Key%20Achievements%20and%20Records) The company achieved record operating cash flow for both Q2 and the first six months of 2025, alongside a record backlog, reflecting strong operational performance and successful project acquisition Key Operational Metrics (Q2 and H1 2025) | Metric | Q2 2025 | H1 2025 | Y/Y Change (Q2) | Y/Y Change (H1) | | :-------------------------- | :---------- | :---------- | :-------------- | :-------------- | | Operating Cash Flow | $262.4 million | $285.3 million | Record | Record | | Backlog (as of Q2 2025 end) | $21.1 billion | N/A | +102% | N/A | - The record backlog includes **$3.1 billion** of new awards and contract adjustments secured in Q2 2025[6](index=6&type=chunk) [2025 EPS Guidance Update](index=1&type=section&id=2025%20EPS%20Guidance%20Update) Tutor Perini raised its 2025 GAAP and Adjusted EPS guidance, reflecting increased confidence in its performance trajectory, and anticipates even higher EPS in 2026 and 2027 Updated 2025 EPS Guidance | Metric | Previous 2025 Guidance | New 2025 Guidance | | :---------------- | :--------------------- | :---------------- | | GAAP EPS | $1.60 to $1.95 | $1.70 to $2.00 | | Adjusted EPS | $2.45 to $2.80 | $3.65 to $3.95 | - The company expects both GAAP EPS and Adjusted EPS for 2026 and 2027 to exceed the upper end of its increased 2025 guidance[6](index=6&type=chunk) [Operational and Financial Review](index=2&type=section&id=Operational%20and%20Financial%20Review) This section details the company's record operating cash flow, substantial backlog growth, and significant balance sheet improvements, highlighting strong financial health and operational efficiency [Operating Cash Flow](index=2&type=section&id=Operating%20Cash%20Flow) Tutor Perini achieved record operating cash flow for both the second quarter and first six months of 2025, significantly increasing year-over-year, primarily due to strong collections from new and ongoing projects Operating Cash Flow (2025 vs 2024) | Period | 2025 Operating Cash Flow | 2024 Operating Cash Flow | Y/Y Change | | :-------------------- | :----------------------- | :----------------------- | :--------- | | Second Quarter | $262.4 million | $53.1 million | Significant increase | | First Six Months | $285.3 million | $151.4 million | Significant increase | - The record operating cash flow was largely driven by collections from newer and ongoing projects, and to a lesser extent, from recent dispute resolutions[7](index=7&type=chunk) - The company anticipates continued strong operating cash flow for the remainder of 2025[7](index=7&type=chunk) [Record Backlog](index=2&type=section&id=Record%20Backlog) The company's backlog reached a new record of **$21.1 billion** as of June 30, 2025, driven by **$3.1 billion** in new awards and contract adjustments during the second quarter, reflecting successful bidding and favorable market conditions Backlog Metrics as of June 30, 2025 | Metric | Value | | :-------------------------------- | :------------ | | Backlog as of June 30, 2025 | $21.1 billion | | Y/Y increase in backlog | 102% | | Q/Q increase in backlog (vs Q1 2025) | 9% | | New awards and contract adjustments in Q2 2025 | $3.1 billion | - The record backlog was achieved due to a strategic bidding approach and favorable market dynamics, including limited competition for larger projects, supported by strong public funding and demand[8](index=8&type=chunk) - Backlog for the Civil and Specialty Contractors segments also set new records[8](index=8&type=chunk) [Significant New Awards](index=2&type=section&id=Significant%20New%20Awards) Key new awards and contract adjustments in Q2 2025 included a **$1.87 billion** Midtown Bus Terminal Replacement and a **$538 million** healthcare project, among others - Key new awards and contract adjustments in Q2 2025 included: * **$1.87 billion** Midtown Bus Terminal Replacement - Phase 1 project in New York * **$538 million** healthcare project in California * Two civil works projects in the Midwest valued at **$127 million** * **$90 million** additional funding for a mass-transit project in California * **$54 million** additional funding for another healthcare project in California[10](index=10&type=chunk) [Significant Balance Sheet Improvements](index=2&type=section&id=Significant%20Balance%20Sheet%20Improvements) Tutor Perini made substantial improvements to its balance sheet, significantly reducing total debt and achieving a cash-exceeding-debt position for the first time since 2010, while also lowering its Costs and Estimated Earnings in Excess of Billings (CIE) Balance Sheet Highlights (June 30, 2025 vs December 31, 2024) | Metric | As of June 30, 2025 | As of December 31, 2024 | Change | | :------------------------------------------------ | :------------------ | :---------------------- | :----- | | Total Debt | $419 million | $534 million | Down 21% | | Cash vs. Total Debt | Cash exceeded debt by $107 million | N/A | First time since 2010 | | Costs and Estimated Earnings in Excess of Billings (CIE) | $856 million | N/A | Down $91 million (10%) vs Q1 2025 | | CIE Level | Lowest since Q2 2017 | N/A | N/A | - The reduction in CIE was primarily driven by the resolution and billing of various previously disputed matters[9](index=9&type=chunk) [Management Remarks](index=3&type=section&id=Management%20Remarks) CEO Gary Smalley highlighted the exceptional second-quarter results, attributing strong revenue growth and profitability to the record backlog, which includes numerous larger, long-duration, and higher-margin projects in early stages. He expressed confidence in continued growth and profitability through 2025 and beyond, supported by record operating cash flow and increased earnings guidance - The strong revenue growth and profitability are being driven by the record backlog, which includes various larger, long-duration, and higher-margin projects, most of which are in early stages[11](index=11&type=chunk) - Management is confident that the record backlog will continue to drive higher revenue and strong profitability over the rest of 2025 and even more so in 2026 and 2027 as newer projects advance to construction[11](index=11&type=chunk) - The first six months of 2025 saw the highest first-half operating cash flow ever, reinforcing expectations for strong earnings and cash flow to continue[11](index=11&type=chunk) [Outlook and Guidance](index=3&type=section&id=Outlook%20and%20Guidance) This section outlines Tutor Perini's updated 2025 EPS guidance, long-term financial projections, and assessment of market demand and external factors influencing future performance [Updated 2025 EPS Guidance](index=3&type=section&id=Updated%202025%20EPS%20Guidance) Based on strong year-to-date results and increased confidence, Tutor Perini has raised its 2025 GAAP and Adjusted EPS guidance, incorporating a significant contingency for potential unknown outcomes Revised 2025 EPS Guidance | Metric | Previous 2025 Guidance | New 2025 Guidance | | :---------------- | :--------------------- | :---------------- | | GAAP EPS | $1.60 to $1.95 | $1.70 to $2.00 | | Adjusted EPS | $2.45 to $2.80 | $3.65 to $3.95 | - The increased guidance for 2025 continues to factor in a significant amount of contingency for various unknown or unexpected outcomes and developments[13](index=13&type=chunk) [Long-Term Outlook](index=3&type=section&id=Long-Term%20Outlook) The company anticipates continued strong operating performance and financial results through 2025, with significantly higher revenue and earnings projected for 2026 and 2027 as large projects advance - Significantly higher revenue and earnings are expected in 2026 and 2027 as various newer large projects advance to the construction phase[12](index=12&type=chunk) - Both GAAP EPS and Adjusted EPS for 2026 and 2027 are projected to be higher than the upper end of the increased 2025 guidance[13](index=13&type=chunk) [Market Demand and External Factors](index=3&type=section&id=Market%20Demand%20and%20External%20Factors) Tutor Perini observes strong demand for its services from both public and commercial sectors, driven by infrastructure projects and new building developments, while monitoring external factors like tariffs - Strong demand for services is driven by well-funded state, local, and federal customers with large-scale, high-priority infrastructure projects, as well as commercial customers advancing projects in healthcare, education, hospitality, and gaming[14](index=14&type=chunk) - The company does not currently anticipate significant impact from recently imposed tariffs or federal funding curtailment but continues to monitor these issues[16](index=16&type=chunk) - Share-based compensation expense, while substantially increased in Q2 2025 due to stock price, is expected to decrease considerably in 2026 and further in 2027 once certain liability-classified awards vest[15](index=15&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) This section explains the purpose and definition of non-GAAP financial measures, primarily adjusted net income and EPS, and provides detailed reconciliations to their GAAP equivalents [Purpose and Definition](index=3&type=section&id=Purpose%20and%20Definition) Tutor Perini presents non-GAAP financial measures, specifically adjusted net income and adjusted EPS, to provide additional insights into its core operational performance by excluding the volatile impact of share-based compensation expense - Non-GAAP measures are intended to facilitate comparison of past and present performance, assess financial performance, forecast future performance, and enhance transparency for investors[17](index=17&type=chunk) - Share-based compensation expense is excluded because it can cause significant volatility in reported earnings, primarily due to fluctuations in the fair value of liability-classified awards indexed to the Company's common stock[19](index=19&type=chunk) - These non-GAAP measures are not necessarily comparable to similarly titled measures reported by other companies and should not be considered in isolation from or as a substitute for GAAP measures[20](index=20&type=chunk) [Reconciliation of Non-GAAP Financial Measures](index=5&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) The company provides a reconciliation of GAAP net income and EPS to adjusted net income and adjusted EPS for the three and six months ended June 30, 2025 and 2024, detailing the impact of share-based compensation expense Reconciliation of Net Income and EPS (Q2 and H1 2025 vs 2024) | (in millions, except per common share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income attributable to Tutor Perini Corporation, as reported | $20.0 | $0.8 | $48.0 | $16.6 | | Plus: Share-based compensation expense | 55.4 | 16.9 | 62.0 | 22.4 | | Less: Tax benefit provided on share-based compensation expense | (0.3) | (0.2) | (0.5) | (0.3) | | **Adjusted net income attributable to Tutor Perini Corporation** | **$75.1** | **$17.5** | **$109.5** | **$38.7** | | EPS, as reported | $0.38 | $0.02 | $0.90 | $0.31 | | Plus: Share-based compensation expense impact per diluted share | 1.04 | 0.32 | 1.17 | 0.43 | | Less: Tax benefit provided on share-based compensation expense per diluted share | (0.01) | (0.00) | (0.01) | (0.01) | | **Adjusted EPS** | **$1.41** | **$0.34** | **$2.06** | **$0.73** | - The substantial increase in share-based compensation expense for the three and six months ended June 30, 2025, compared to prior-year periods, was driven by the significant increase in the Company's stock price[23](index=23&type=chunk) [Reconciliation of Non-GAAP Guidance](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Guidance) A reconciliation is provided for the full year 2025 GAAP EPS guidance to Adjusted EPS guidance, detailing the estimated impact of share-based compensation expense Reconciliation of Full Year 2025 EPS Guidance | (in common share amounts) | Full Year 2025 | | :---------------------------------------------------------- | :------------- | | GAAP EPS guidance | $1.70 to $2.00 | | Plus: Share-based compensation expense impact per diluted share (estimated) | $1.97 | | Less: Tax benefit provided on share-based compensation expense per diluted share (estimated) | $(0.02) | | **Adjusted EPS guidance** | **$3.65 to $3.95** | [Company Information](index=6&type=section&id=Company%20Information) This section provides details on Tutor Perini's upcoming Q2 2025 conference call and an overview of the company's extensive experience and diversified construction services [Second Quarter 2025 Conference Call](index=6&type=section&id=Second%20Quarter%202025%20Conference%20Call) Tutor Perini will host a conference call on August 6, 2025, to discuss its second-quarter 2025 results, with details provided for participation and webcast access - The conference call is scheduled for **2:00 PM Pacific Time** on Wednesday, August 6, 2025[27](index=27&type=chunk) - Access details include dial-in numbers for domestic and international callers, and a live webcast available on www.tutorperini.com, with replay options[27](index=27&type=chunk)[28](index=28&type=chunk) [About Tutor Perini Corporation](index=6&type=section&id=About%20Tutor%20Perini%20Corporation) Tutor Perini Corporation is a leading civil, building, and specialty construction company with over a century of experience, offering diversified general contracting and design-build services globally, known for executing large, complex projects - The company provides general contracting, pre-construction planning, and comprehensive project management services, with expertise in design-bid-build, design-build, construction management, and public-private partnership (P3) projects[29](index=29&type=chunk) - Tutor Perini often self-performs multiple project components, including earthwork, excavation, concrete forming and placement, steel erection, electrical, mechanical, plumbing, HVAC, and fire protection[29](index=29&type=chunk) [Forward-Looking Statements](index=6&type=section&id=Forward-Looking%20Statements) This section outlines the forward-looking nature of certain statements in the release, emphasizing that actual results may differ materially due to various risks and uncertainties, including litigation outcomes, economic factors, contract risks, and operational challenges. The company disclaims any obligation to update these statements unless required by law - Forward-looking statements are based on current expectations and beliefs, but there is no assurance that future developments will align with anticipations[30](index=30&type=chunk) - Key risks and uncertainties include unfavorable litigation outcomes, revisions of contract estimates, economic factors (inflation, tariffs), contract requirements for extra work, inability to obtain bonding, economic slowdowns, failure to meet schedule requirements, and inability to attract/retain key personnel[30](index=30&type=chunk)[31](index=31&type=chunk) - Other risks involve decreases in government spending, IT interruptions, inclement weather, international operations risks, client cancellations, increased competition, government contract regulations, joint venture partner failures, and fluctuations in common stock price[31](index=31&type=chunk) [Financial Statements](index=9&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of income, balance sheets, cash flows, and detailed segment and backlog information for Tutor Perini [Condensed Consolidated Statements of Income](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The condensed consolidated statements of income show the company's financial performance for the three and six months ended June 30, 2025 and 2024, highlighting significant increases in revenue, gross profit, and net income attributable to Tutor Perini Corporation Condensed Consolidated Statements of Income (Q2 and H1 2025 vs 2024) | (in thousands, except per common share amounts) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :---------------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | REVENUE | $1,373,681 | $1,127,470 | $2,620,314 | $2,176,457 | | GROSS PROFIT | 195,995 | 117,078 | 330,396 | 232,328 | | INCOME FROM CONSTRUCTION OPERATIONS | 76,430 | 40,493 | 141,755 | 89,299 | | NET INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION | $19,974 | $812 | $47,972 | $16,572 | | DILUTED EARNINGS PER COMMON SHARE | $0.38 | $0.02 | $0.90 | $0.31 | [Segment Information](index=10&type=section&id=Segment%20Information) Segment-level financial data reveals the performance of Civil, Building, and Specialty Contractors segments, detailing revenue, cost of operations, general and administrative expenses, and income (loss) from construction operations for both quarterly and year-to-date periods [Three Months Ended June 30, 2025](index=10&type=section&id=Three%20Months%20Ended%20June%2030%2C%202025) This section presents the revenue and income (loss) from construction operations for the Civil, Building, and Specialty Contractors segments for the three months ended June 30, 2025 Segment Performance (Q2 2025) | (in thousands) | Civil | Building | Specialty Contractors | Total | | :------------------------------------ | :------ | :------- | :-------------------- | :------ | | Revenue from external customers | $734,187 | $462,082 | $177,412 | $1,373,681 | | Income (loss) from construction operations | $140,115 | $22,450 | $(18,016) | $144,549 | [Three Months Ended June 30, 2024](index=10&type=section&id=Three%20Months%20Ended%20June%2030%2C%202024) This section presents the revenue and income (loss) from construction operations for the Civil, Building, and Specialty Contractors segments for the three months ended June 30, 2024 Segment Performance (Q2 2024) | (in thousands) | Civil | Building | Specialty Contractors | Total | | :------------------------------------ | :------ | :------- | :-------------------- | :------ | | Revenue from external customers | $546,488 | $417,866 | $163,116 | $1,127,470 | | Income (loss) from construction operations | $75,587 | $5,047 | $(7,846) | $72,788 | [Six Months Ended June 30, 2025](index=11&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025) This section presents the revenue and income (loss) from construction operations for the Civil, Building, and Specialty Contractors segments for the six months ended June 30, 2025 Segment Performance (H1 2025) | (in thousands) | Civil | Building | Specialty Contractors | Total | | :------------------------------------ | :-------- | :------- | :-------------------- | :-------- | | Revenue from external customers | $1,344,228 | $921,866 | $354,220 | $2,620,314 | | Income (loss) from construction operations | $219,715 | $32,909 | $(25,127) | $227,497 | [Six Months Ended June 30, 2024](index=11&type=section&id=Six%20Months%20Ended%20June%2030%2C%202024) This section presents the revenue and income (loss) from construction operations for the Civil, Building, and Specialty Contractors segments for the six months ended June 30, 2024 Segment Performance (H1 2024) | (in thousands) | Civil | Building | Specialty Contractors | Total | | :------------------------------------ | :-------- | :------- | :-------------------- | :-------- | | Revenue from external customers | $1,018,653 | $829,808 | $327,996 | $2,176,457 | | Income (loss) from construction operations | $146,330 | $21,167 | $(26,158) | $141,339 | [Condensed Consolidated Balance Sheets](index=12&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The condensed consolidated balance sheets show the company's financial position as of June 30, 2025, compared to December 31, 2024, indicating growth in total assets and equity, alongside a reduction in long-term debt Condensed Consolidated Balance Sheets (June 30, 2025 vs December 31, 2024) | (in thousands) | As of June 30, 2025 | As of December 31, 2024 | | :------------------------------------------------ | :------------------ | :---------------------- | | Total current assets | $3,898,222 | $3,286,667 | | Total assets | $4,870,077 | $4,242,710 | | Total current liabilities | $2,955,930 | $2,332,700 | | Long-term debt, less current maturities | $393,298 | $510,025 | | Total liabilities | $3,630,258 | $3,084,104 | | Total equity | $1,239,819 | $1,158,606 | - Cash and cash equivalents increased to **$526,090 thousand** as of June 30, 2025, from **$455,084 thousand** at year-end 2024[43](index=43&type=chunk) - Costs and estimated earnings in excess of billings (CIE) decreased to **$856,379 thousand** from **$942,522 thousand**[43](index=43&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) The condensed consolidated statements of cash flows show a significant increase in net cash provided by operating activities for the six months ended June 30, 2025, compared to the prior year, while cash used in investing and financing activities also changed Condensed Consolidated Statements of Cash Flows (H1 2025 vs 2024) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | | Net income | $89,835 | $43,471 | | NET CASH PROVIDED BY OPERATING ACTIVITIES | $285,275 | $151,413 | | NET CASH USED IN INVESTING ACTIVITIES | $(67,681) | $(24,012) | | NET CASH USED IN FINANCING ACTIVITIES | $(134,702) | $(242,592) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $82,892 | $(115,191) | | Cash, cash equivalents and restricted cash at end of period | $547,080 | $279,489 | - The increase in operating cash flow was significantly influenced by higher net income and changes in working capital components[45](index=45&type=chunk) - Financing activities saw a reduction in net cash used, primarily due to lower debt repayments compared to the prior year[45](index=45&type=chunk) [Backlog Information](index=14&type=section&id=Backlog%20Information) The backlog information details the company's project pipeline, showing a substantial increase in total backlog as of June 30, 2025, driven by new awards across all segments [Backlog for Three Months Ended June 30, 2025](index=14&type=section&id=Backlog%20for%20Three%20Months%20Ended%20June%2030%2C%202025) This section details the backlog at the beginning and end of Q2 2025, including new awards and revenue recognized across Civil, Building, and Specialty Contractors segments Backlog Movement (Q2 2025) | (in millions) | Backlog at March 31, 2025 | New Awards in the Three Months Ended June 30, 2025 | Revenue Recognized in the Three Months Ended June 30, 2025 | Backlog at June 30, 2025 | | :-------------------- | :------------------------ | :------------------------------------------------- | :------------------------------------------------------- | :----------------------- | | Civil | $9,682.7 | $2,218.8 | $(734.2) | $11,167.3 | | Building | $6,709.2 | $664.0 | $(462.1) | $6,911.1 | | Specialty Contractors | $3,001.3 | $181.0 | $(177.4) | $3,004.9 | | **Total** | **$19,393.2** | **$3,063.8** | **$(1,373.7)** | **$21,083.3** | [Backlog for Six Months Ended June 30, 2025](index=14&type=section&id=Backlog%20for%20Six%20Months%20Ended%20June%2030%2C%202025) This section details the backlog at the beginning and end of H1 2025, including new awards and revenue recognized across Civil, Building, and Specialty Contractors segments Backlog Movement (H1 2025) | (in millions) | Backlog at December 31, 2024 | New Awards in the Six Months Ended June 30, 2025 | Revenue Recognized in the Six Months Ended June 30, 2025 | Backlog at June 30, 2025 | | :-------------------- | :------------------------- | :----------------------------------------------- | :----------------------------------------------------- | :----------------------- | | Civil | $8,835.6 | $3,675.9 | $(1,344.2) | $11,167.3 | | Building | $7,026.9 | $806.1 | $(921.9) | $6,911.1 | | Specialty Contractors | $2,811.4 | $547.7 | $(354.2) | $3,004.9 | | **Total** | **$18,673.9** | **$5,029.7** | **$(2,620.3)** | **$21,083.3** |

Core Viewpoint - Tutor Perini Corporation (TPC) is expected to report strong second-quarter results, driven by robust public infrastructure spending and increased project execution activities, despite facing challenges in its Building segment and macroeconomic uncertainties [2][10][20]. Financial Performance - In Q1 2025, TPC reported earnings per share (EPS) of $0.29, exceeding the Zacks Consensus Estimate by 783.3%, with revenues of $1.07 billion, surpassing estimates by 15.1% [2]. - The Zacks Consensus Estimate for Q2 2025 EPS is $0.29, reflecting a 52.6% increase from $0.19 in the previous year, while revenues are projected to reach $1.23 billion, indicating a 9.2% year-over-year growth [3][4]. Revenue Segments - The Civil and Specialty segments are expected to lead revenue growth, with estimates of $615 million and $168 million, respectively, while the Building segment is anticipated to decline by 4.4% to $415 million due to reduced project execution activities [13]. - TPC's collaboration with its Guam-based subsidiary, Platt Construction, is expected to enhance revenue visibility, with a combined contract capacity of over $32 billion from recent opportunities [11]. Margin Analysis - The bottom line is expected to benefit from increased project execution in high-margin Civil segment projects, contributing to overall margin improvement [14][15]. - The focus on high-margin and long-term projects is anticipated to support margin growth despite challenges in the Building segment [15]. Stock Performance and Valuation - TPC's stock has increased by 100.6% over the past three months, outperforming industry benchmarks [16]. - The current forward P/E ratio of 18.14X suggests a discounted valuation compared to industry peers, presenting an attractive entry point for investors [19]. Challenges and Risks - The company faces challenges in its Building segment due to reduced activities on a mass-transit project in California and ongoing macroeconomic uncertainties [20]. - Rising material costs and inflationary pressures are expected to impact long-term margins, with general and administrative expenses increasing by 4% year-over-year in Q1 2025 [21].

Core Insights - The article emphasizes the focus on growth and momentum stocks that are reasonably priced and expected to outperform the market in the long term [1] - It highlights a significant investment opportunity, noting that the S&P 500 increased by 367% and the Nasdaq by 685% from March 2009 to 2019, indicating a strong recovery and growth potential in the market [1] Investment Strategy - The investment strategy involves long-term investment in quality stocks, with the use of options to enhance returns [1] - The article suggests that investors should consider high-quality growth stocks as a means to generate wealth [1]

Core Insights - Tutor Perini (TPC) is strategically positioning itself in the Indo-Pacific region, particularly in Guam, to capitalize on opportunities arising from the U.S. military's Pacific Deterrence Initiative [1][4] Group 1: Business Opportunities - TPC and its subsidiary, Black Construction, have secured four multiple-award construction contracts (MACCs) with a total capacity exceeding $32 billion over the next eight years, placing the company on a shortlist for military-funded projects across Guam and other Pacific islands [2][11] - The company is currently executing over $570 million in waterfront repairs in Guam and is targeting new project opportunities that may exceed $800 million each [3][11] - TPC's expansion in the Indo-Pacific aligns with its record backlog of $19.4 billion and its strategy to pursue higher-margin, well-funded projects, benefiting from limited competition and strong geopolitical support [4][5] Group 2: Competitive Landscape - AECOM (ACM) and Fluor (FLR) are also competing for dominance in the Indo-Pacific, with AECOM having a strong presence in defense-related infrastructure and Fluor having a diversified global military footprint [6][7] - Despite the competition, TPC's focused presence and recent contract wins suggest it may outperform AECOM and Fluor in this growth corridor [8] Group 3: Financial Performance - TPC's stock has increased by 126.6% over the past three months, outperforming the broader construction sector and the S&P 500 index [9][11] - The company is currently trading at a forward P/E ratio of 19.35, indicating a promising valuation compared to industry peers [13][11] - The Zacks Consensus Estimate for TPC's earnings indicates a year-over-year increase of 155.9% for 2025 and 76.6% for 2026, although the estimate for 2025 has seen a slight decline recently [15]

Group 1 - Tutor Perini's stock closed at $48.29, down 1.79% from the previous session, underperforming the S&P 500's gain of 0.07% [1] - Prior to the recent trading day, Tutor Perini's shares had increased by 11.55%, surpassing the Construction sector's gain of 8.29% and the S&P 500's gain of 5.71% [1] Group 2 - The upcoming earnings report for Tutor Perini is expected to show an EPS of $0.29, representing a 52.63% increase from the same quarter last year, with projected revenue of $1.23 billion, reflecting a 9.22% rise [2] - For the annual period, earnings are anticipated to be $1.74 per share and revenue at $5.13 billion, indicating increases of 155.59% and 18.65% respectively from the previous year [3] Group 3 - Recent changes in analyst estimates for Tutor Perini are important as they reflect short-term business trends, with positive revisions indicating optimism about the company's outlook [3] - The Zacks Rank system, which evaluates estimate changes, currently ranks Tutor Perini at 4 (Sell), with a 0.29% decrease in the consensus EPS estimate over the last 30 days [5] Group 4 - Tutor Perini is trading at a Forward P/E ratio of 28.26, which is higher than the industry average Forward P/E of 24.32 [6] - The Building Products - Heavy Construction industry, part of the Construction sector, holds a Zacks Industry Rank of 6, placing it in the top 3% of over 250 industries [6]

Core Insights - Tutor Perini Corporation (TPC) is focused on enhancing its position in large-scale rail and transit infrastructure, supported by a record backlog and a growing pipeline of civil opportunities [1][4] - The company's total backlog reached an all-time high of $19.4 billion as of March 31, 2025, reflecting a 94% year-over-year increase, with the Civil segment contributing $9.7 billion [1][8] Project Highlights - In Q1, Tutor Perini secured a $1.18 billion contract for the Manhattan tunnel project, part of the Gateway initiative to modernize rail infrastructure between Newark and New York Penn Station [2] - Upcoming significant projects include the $12 billion California transit project, the $3.8 billion Southeast Gateway line, the $1 billion North Valley Rail project, the $900 million Foothill Gold Line, and the $1.8 billion South Jersey Glassboro-to-Camden line [3] Market Performance - TPC's stock has increased by 140.4% over the past three months, outperforming the Zacks Building Products - Heavy Construction industry, the broader Zacks Construction sector, and the S&P 500 index [5] - The current valuation of TPC appears attractive, with a forward 12-month price-to-earnings ratio of 20.54, which is lower than peers EMCOR Group, Inc. and MasTec, Inc. [9][11] Earnings Outlook - The Zacks Consensus Estimate for Tutor Perini's earnings indicates a year-over-year increase of 155.9% for 2025 and 76.6% for 2026, with the estimate for 2025 remaining unchanged over the past 30 days [12]

Core Insights - Sterling Infrastructure, Inc. and Tutor Perini Corporation are capitalizing on a strong infrastructure cycle, focusing on large-scale public and civil projects, supported by federal and state spending programs like the Infrastructure Investment and Jobs Act (IIJA) [1][2][23] - Both companies have healthy backlogs and are experiencing consistent award wins, which are crucial for sustaining long-term earnings momentum [2][23] Sterling Infrastructure, Inc. (STRL) - Sterling is enhancing its position as a diversified infrastructure provider, focusing on high-margin design-build and e-infrastructure solutions in growth-heavy regions [2][4] - In Q1 2025, Sterling's E-Infrastructure Solutions segment saw revenues increase by 18% year-over-year, with adjusted operating income rising by 61% and segment margins exceeding 23% [5] - The total backlog for Sterling reached $2.1 billion, with the E-Infrastructure portion at $1.2 billion, reflecting a 27% year-over-year increase [6] - The Transportation Solutions segment's backlog stood at $861 million, up 11% year-over-year, indicating strong revenue visibility [7] - Management anticipates mid-single-digit revenue growth and mid-teen operating profit growth for 2025, supported by robust pipelines in specific markets [8] - Ongoing federal investment under the IIJA enhances Sterling's long-term growth prospects, with a book-to-burn ratio above 2X [9][10] Tutor Perini Corporation (TPC) - Tutor Perini is expanding its portfolio of civil and specialty construction projects, aligning with national funding priorities to benefit from multi-year government investments [11][12] - In Q1 2025, Tutor Perini secured approximately $2 billion in new awards, pushing its backlog to a record $19.4 billion, nearly doubling from the previous year [12] - The company is experiencing steady commercial demand across various sectors, including healthcare and education, which adds balance to its backlog [13] - Tutor Perini raised its 2025 earnings guidance, emphasizing disciplined bidding and execution efficiency [14] - The company is well-positioned to pursue profitable growth in 2026 and beyond due to its solid pipeline and sustained market demand [14] Share Price Performance - Year-to-date, Tutor Perini's share price has increased by 102.4%, significantly outperforming Sterling's 43.5% gain and the broader Construction sector's 2.7% rise [15] Valuation and Earnings Estimates - Tutor Perini is trading at a lower forward 12-month price-to-earnings (P/E) ratio compared to Sterling [17] - The Zacks Consensus Estimate for 2025 earnings per share indicates a 41.2% improvement for Sterling and a 155.9% increase for Tutor Perini [19] Conclusion - Both companies are well-positioned to benefit from strong infrastructure spending and expanding project pipelines, making them attractive options for investors seeking durable growth in the construction sector [23][24] - Tutor Perini's more attractive valuation and stronger projected EPS growth for 2025 suggest it may be the more compelling investment choice [25]

Core Insights - Tutor Perini Corporation (TPC) is experiencing significant growth in the healthcare construction sector, with a record backlog of $19.4 billion as of March 31, 2025, reflecting a 94% year-over-year increase [1][10] - The company secured $111 million in additional funding for healthcare projects in California in Q1 2025, and a $500 million healthcare project has advanced to the construction phase [2][10] - Ongoing preconstruction activities and new project awards indicate a strong pipeline for future growth in healthcare construction [3][4] Company Developments - TPC's backlog is supported by a robust pipeline of large public and institutional projects, particularly in healthcare, which is expected to drive further backlog expansion [4][10] - The company is well-positioned to benefit from healthcare clients investing in major upgrades and new facilities, reinforcing its growth potential [4][10] Industry Trends - Other companies, such as EMCOR Group and Comfort Systems USA, are also capitalizing on the growing demand in healthcare construction [5] - EMCOR reported a 10.2% revenue growth in Q1 2025, with healthcare-related obligations increasing by 38% year-over-year to $1.5 billion [6][7] - Comfort Systems noted that healthcare now constitutes approximately 10% of its business, with institutional markets contributing 24% of total revenues [8] Stock Performance and Valuation - TPC's stock has surged 98.6% year-to-date, outperforming industry peers and major indices [9] - The company's current valuation is attractive, trading at a forward price-to-earnings ratio of 19.62, which is lower than industry averages [12] - The Zacks Consensus Estimate indicates a significant earnings growth of 155.9% for 2025 and 76.6% for 2026 [14]

Core Insights - Tutor Perini Corporation (TPC) is well-insulated from near-term shocks related to tariff risks, particularly in the construction sector, due to its strategic bidding and procurement practices [1][2][5] Group 1: Company Strategies - TPC employs a two-pronged approach in its bidding process, incorporating inflation contingencies and pricing buffers before contracts are awarded [2] - After securing projects, TPC locks in fixed-price subcontracts and bulk material buyouts to protect its margins from commodity price escalations [2] - The company has a record backlog of $19.4 billion, primarily supported by state and local governments and long-committed federal infrastructure funding [3] Group 2: Project Activity - TPC has experienced an acceleration in smaller projects as clients aim to mitigate potential cost increases, indicating strong demand and no signs of pullback [4] - Recent project awards include a $1.18 billion Manhattan tunnel and a $500 million California healthcare facility, contributing to backlog growth [4] Group 3: Competitive Landscape - Competitors like Granite Construction and Fluor Corporation face similar tariff-related challenges but have different strategies; Granite is more exposed to material price volatility, while Fluor's global operations may increase its vulnerability to geopolitical shifts [6][7][8] - TPC's U.S.-focused, federally backed pipeline provides greater visibility and protection compared to its peers [8][9] Group 4: Financial Performance - TPC's stock has surged 99.1% year-to-date, outperforming the broader construction sector and the S&P 500 index [10][12] - Earnings estimates for 2025 and 2026 have increased by 14.4% to $1.75 per share and 10.8% to $3.09 per share, respectively, indicating significant year-over-year growth [13] - The current valuation of TPC appears attractive, with a forward 12-month price-to-earnings (P/E) ratio of 19.88, suggesting potential for investors [15]

Company Performance - Tutor Perini (TPC) closed at $48.18, reflecting a +1.52% change from the previous day, outperforming the S&P 500's gain of 0.83% [1] - The stock has increased by 22.92% prior to the latest trading session, significantly surpassing the Construction sector's gain of 7.94% and the S&P 500's gain of 4.99% [1] Upcoming Earnings - The upcoming earnings release is anticipated, with an expected EPS of $0.29, representing a 52.63% increase from the same quarter last year [2] - Revenue is forecasted to be $1.23 billion, indicating a 9.22% rise compared to the year-ago quarter [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $1.75 per share and revenue at $5.13 billion, reflecting increases of +155.91% and +18.65% respectively from the previous year [3] - Recent changes in analyst estimates suggest a positive outlook for Tutor Perini, indicating optimism about the business trends [3] Zacks Rank and Valuation - Tutor Perini currently holds a Zacks Rank of 1 (Strong Buy), with the Zacks Consensus EPS estimate remaining unchanged over the last 30 days [5] - The company has a Forward P/E ratio of 27.2, which is a premium compared to the industry average Forward P/E of 22.97 [5] Industry Context - The Building Products - Heavy Construction industry, part of the Construction sector, has a Zacks Industry Rank of 2, placing it in the top 1% of over 250 industries [6] - Strong individual industry groups, as measured by the Zacks Industry Rank, tend to outperform weaker groups by a factor of 2 to 1 [6]